Globalwafers Co., Ltd. · TPEX:6488
Globalwafers — Q1 2020 Earnings Presentation
31 slides from Globalwafers's earnings presentation, May 18, 2020
Slide 1: GlobalWafers (6488 TT) 1Q20 Results Presentation
GlobalWafers (6488 TT) 1Q20 Results Presentation Spokesman: William Chen, Vice President TEL: +886-3-577-2255 EXT: 2280 Email: William@sas-globalwafers.com May 2020 © GlobalWafers Co., Ltd. All rights reserved 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by GlobalWafers Co., Ltd. (the “Company”). This presentation and the materials provided herewith do not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company in any jurisdiction or an inducement
Slide 3: Executive Comments
Executive Comments Outlook Macro economic, Semi/wafer markets are in tremendous flux. Forecast predictions are a temporary "best guess" and highly dependent on the unknown length and depth of COVID-19 impact. The semiconductor’s industry has been designated as ‘Essential’ by the regulators of
Slide 4: 2020Q1
2020Q1 1Q20 ended with an uptick in wafer shipments. However the logistic challenges resulted from COVID-19 outbreak and the subsequent restriction measures offset partial profits. 2Q20 wafer demand is forecasted stable or very close to 1Q20. 2H20 wafer demand will depend on large part whether
Slide 5: Recent Events
Recent Events Repatriation of Offshore Funds Amount : USD 355 million (over NTD 10 billion) Investment plan : Capacity expansion for advanced process. (Mainly for 300mm advanced products and technologies) Increase SiC and SI SiC capacity. Enhance TWN HQ R&D for product differentiation.
Slide 6: Global GDP Growth Forecast
Global GDP Growth Forecast • In its revised March forecast, the IMF predicted the “Great Lockdown” recession would be the steepest in almost a century and warned the world economy’s contraction and recovery could be worse than anticipated if the coronavirus lingers or returns. • The IMF lowered it’s
Slide 7: The IMF's Revised World Economic Outlook
The IMF’s Revised World Economic Outlook Strong balance sheets will be needed for post-COVID-19 Capex Spending. © GlobalWafers Co., Ltd. All rights reserved 7
Slide 8: IDC's Projections for COVID-19 Recovery
IDC’s Projections for COVID-19 Recovery Regardless of which scenario emerges, the winners will be those who are prepared to respond to the demands of emerging technologies like 5G, the Internet of Things, high- performance computing and the intelligent edge. We have the resources to withstand cu
Slide 9: The Semiconductor Industry's Vital Role in the COVID-19 Pandemic
The Semiconductor Industry’s Vital Role in the COVID-19 Pandemic Being the key enabler, semiconductors are necessary in every aspect of the economy, keeping infrastructure and the society functioning. Apart from consumer devices, semiconductors are widely used in critical infrastructure, such as
Slide 10: GlobalWafers COVID-19 Countermeasures
GlobalWafers COVID-19 Countermeasures Build safety inventory for all necessary raw materials to guard against supply chain disruptions. Maximize our ability to shift orders as needed between our global manufacturing sites, pending changes in local country quarantine policies. Risk management o
Slide 11: COVID-19 Brings Immediate Challenges
COVID-19 Brings Immediate Challenges COVID-19 could be a catalyst for companies to revisit their global supply chain strategies. It could reshape the global supply chain. We will be well-positioned should this happen. Share of all Imports of Intermediate Manufacturing Products from China GWC G
Slide 12: Potential Supply Chain Responses to COVID-19
Potential Supply Chain Responses to COVID-19 Deglobalization Supply chain players may seek to mitigate future disruptions This could accelerate the trend towards diminished global interdependence and integration Our View: GlobalWafers supplies GLOBALLY and LOCALLY. Our global footprint is the be
Slide 13: Industry Overview
Industry Overview © GlobalWafers Co., Ltd. All rights reserved 13
Slide 14: Parts of Tech Sectors Boomed in 1Q20
Parts of Tech Sectors Boomed in 1Q20 As business were suddenly forced to equip a newly remote work force, some parts of the tech supply chain benefitted from WFH(Work From Home) & ROHO (Remote Office Home Office) associated demand. Parts of Tech Sectors Boomed in 1Q20 Source: Canalyses, April, 202
Slide 15: Worldwide Public Cloud Revenue
Worldwide Public Cloud Revenue The worldwide public cloud services market is forecast to grow 17% in 2020 to total $266.4 billion, up from $227.8 billion in 2019. Worldwide Public Cloud Service Revenue Forecast (USD bn) Source: Gartner, April, 2020 © GlobalWafers Co., Ltd. All rights reserved 15
Slide 16: AI-enabled ICs to See Strong Long-Term Growth
AI-enabled ICs to See Strong Long-Term Growth Chips used for AI applications are set for massive growth in the next five years as use of the technology expands across a variety of markets. Its significant computational capabilities and vast potential for deep learning are applicable to a wide va
Slide 17: Strong Server Shipment
Strong Server Shipment Owing to strong orders for data center servers and traditional server brands’ preemptive stock-up demand to avoid pandemic-induced breaks in the server supply chain, overall server shipment is expected to remain on the upswing in 2Q20. Global Server Shipment Forecast (millio
Slide 18: Medical Electronics Market
Medical Electronics Market Semiconductors in medical electronics market are expected to grow with a CAGR of 8% each year, expanding from $5.5 billion now to a little under $8 billion by 2024. The market for semiconductors used in medical applications is one of the fastest growing segments of the
Slide 19: Accelerating 5G Infrastructure Construction
Accelerating 5G Infrastructure Construction Though the global economy is under the shadow of COVID-19, many nations consider 5G a crucial strategy to offset the uncertainties and are accelerating infrastructure construction. Korea China 3 main telecom companies increased 5G network China deploys "
Slide 20: 1Q20 Performance Update
1Q20 Performance Update © GlobalWafers Co., Ltd. All rights reserved 20
Slide 21: 1Q20 Financial Highlights
1Q20 Financial Highlights Stable financial performance Revenue NTD 13,515mn (QoQ : 0.1%) EBITDA: 5,015mn (QoQ : 1.1%) EBIT: 3,845mn (QoQ : 1.9%) Profits are slightly offset by rising logistics cost GM: 36.5% (QoQ : -1.7%) Operating Profit: 28.2% (QoQ : -0.3%) Net Profit : 21.3% (Qo
Slide 22: Financial Highlight: 1Q20 vs. 4Q19
Financial Highlight : 1Q20 vs. 4Q19 (NT$mn) 1Q20 4Q19 QoQ Revenue 13,515 13,506 0.1% EBITDA*1 5,015 4,959 1.1% EBITDA % 37.1% 36.7% 1.1% EBIT 3,845 3,772 1.9% Operating Profit 3,805 3,853 -1.3% Operating Profit % 28.2% 28.5% -0.3% Net Profit 2,880 2,908 -1.0% Net Profit % 21.3% 21.5% -0.2% EPS NT$6.
Slide 23: Revenue & Gross Margin
Revenue & Gross Margin Revenue & Gross Margin (NT$mn) © GlobalWafers Co., Ltd. All rights reserved 23
Slide 24: EBITDA & EPS
EBITDA & EPS EBITDA EPS (NT$mn) (NT$) © GlobalWafers Co., Ltd. All rights reserved 24
Slide 25: Financial Leverage
Financial Leverage Sufficient cash makes GlobalWafers capable of sustainable development. Bank loans increased in preparation for dividend distribution. Cash Structure and Bank Loan (NT$mn) Bank Loan Restricted Cash Other Cash Prepayment 50,000 45,000 40,000 35,214 35,820 35,547 35,000 2,998 7,2
Slide 26: Dividend Payout
Dividend Payout Record high EPS in conjunction with a high dividend payout. Dividend Payout va.EPS (NT$) Dividend Payout 89.6% 86.4% 86.2% 98.4% 78.9% 80.2% 79.7% Ratio% * 2019 dividend payout is subject to AGM approval on June 23, 2020 © GlobalWafers Co., Ltd. All rights reserved 26
Slide 27: Smoothing Out the Shareholder Dividend Stream
Smoothing Out the Shareholder Dividend Stream Dividend payout once every 6 months to smooth out the income stream for shareholders*. Our track record of consistently robust dividend payouts reflects GlobalWafers commitment to shareholder value creation. Dividend Distribution schedule : • 1H20
Slide 28: Income Statement
Income Statement Income Statement (NT$mn) 2013 2014 2015 2016 2017 2018 2019 1Q20 Revenue 15,570 15,922 15,310 18,427 46,213 59,064 58,094 13,515 Growth (%) - 2.3% -3.8% 20.4% 150.8% 27.8% -1.6% - Gross Profit 3,663 3,728 4,073 4,130 11,808 22,299 22,847 4,938 Gross Profit Margin (%) 23.5% 23.4% 26.
Slide 29: Balance Sheet
Balance Sheet Balance Sheet (NT$mn) 2013 2014 2015 2016 2017 2018 2019 1Q20 Assets Cash and cash equivalents 1,536 2,685 3,662 5,628 18,794 35,214 32,822 28,285 Account receivable 3,165 3,694 4,538 7,642 7,869 9,226 8,140 8,574 Inventories 3,291 2,829 3,262 7,307 7,347 7,040 6,849 6,416 Property, pl
Slide 30: Q&A
Q&A © GlobalWafers Co., Ltd. All rights reserved 30
Slide 31: Thank You
Thank You © GlobalWafers Co., Ltd. All rights reserved 31